STBL Launches USST Stablecoin on Stellar as Institutions Chase Real-World Asset Liquidity

The launch, announced July 1 and shared with Bitcoin.com News, comes through a partnership between STBL and the Stellar Development Foundation. USST runs on STBL‘s Stablecoin 2.0 infrastructure and gives institutional holders of tokenized treasuries a way to access decentralized finance (DeFi) liquidity without giving up their yield-bearing positions.

How USST Works

Market participants deposit qualifying real-world assets ( RWAs), such as tokenized treasuries or money market funds, to mint USST. The protocol supports settlement, collateral mobility, and cross-border payments.

Initial minting will run on eligible tokenized treasury collateral, starting with USDY. STBL says it plans to add Franklin Templeton‘s BENJI as a second collateral option, part of a broader effort to widen the pool of assets institutions can use to back the stablecoin.

A Trade-Off Institutions Have Faced

Institutional investors holding tokenized treasuries and money market funds have long faced a choice. They could keep that exposure or convert it into liquidity for DeFi activity. STBL says USST removes that choice.

“Institutional investors increasingly hold tokenized treasuries and money market funds, but they still face a trade-off between maintaining DeFi exposure and accessing liquidity,” Dr. Avtar Sehra, CEO and co-founder of STBL, remarked on Wednesday.

Sehra added:

“USST removes that trade-off.”

STBL was co-founded by Sehra and Reeve Collins, who also founded Tether. Sehra previously founded Nivaura and Kaio.

Stellar’s Role in the RWA Push

Stellar has positioned itself as infrastructure for real-world asset issuance and payments, processing billions of operations since launch. The Stellar Development Foundation frames the USST integration as part of that broader push.

“As tokenized real-world assets continue to gain momentum, institutions are looking for infrastructure that can support liquidity, settlement, and utility,” said Raja Chakravorti, chief business officer of the Stellar Development Foundation.

What This Means for Traders and Investors

For institutional players already holding tokenized treasuries, USST offers a route into onchain liquidity without exiting yield-generating positions. That matters for asset managers weighing DeFi participation against the returns they already collect from treasury exposure.

STBL’s dual token architecture also underpins other branded stablecoins, including deployments on X-Layer, where USST serves as a reserve asset. The company says it will keep expanding the range of eligible collateral over time, opening the door to more asset issuers and RWA providers joining the network.

No launch date has been set for the BENJI collateral integration. STBL has not disclosed initial minting volume for USST on Stellar.